Los Cuarentas Este

Status: Under Option to Centerra Gold

Target

The target at Los Cuarentas Este is a porphyry copper/molybdenum deposit.

Location and Setting

The Los Cuarentas Este project is located approximately 170 kilometers northeast of Hermosillo in Northern Sonora, Mexico.

Land Status

Los Cuarentas Este comprises three claims totaling 10,433 hectares controlled 100% by Recursos Millrock, subject to production royalties of 1.5% on gold and 1% on other metals.

Previous Exploration

Significant stream sediment and rock chip sampling have been completed on the Los Cuarentas Este property. The database currently contains roughly 265 rock samples and 98 silt samples; no diamond drilling has been done to date. Recursos Millrock is aware that mapping has been done by BHP and that Teck Corporation has drilled holes previously but the company does not have access to this information.

Geology and Mineralization

Bedrock within the Los Cuarentas Este area consists of a district-scale plunging anticline or dome which exposes rocks of Early Cretaceous through Tertiary age. This volcano-sedimentary sequence is overlain to the southeast by younger conglomeratic cover of the late Tertiary to Quaternary Baucarit Formation. The oldest exposed rocks are Lower Cretaceous clastic sedimentary rocks and limestone overlain by Upper Cretaceous to Paleocene volcanic rocks consisting of green to maroon andesite, minor dacite to rhyolite, green to grey green sandstone and some minor lensoidal intercalated limestone. The Upper Cretaceous volcanic rocks are overlain by a thick pile of cliff-forming, pale weathering felsic tuffs assigned an Oligocene age. The Cretaceous and Paleocene rocks are intruded by stocks consisting mostly of equigranular quartz monzonite and related dykes. Similar intrusive rocks elsewhere on the map sheet have been dated by K‐Ar methods at 56.73 ± 0.14 Ma or Paleocene age.

The volcanic rocks at Los Cuarentas Este exhibit widespread, pyritic argillic /silicic alteration with locally conspicuous tourmaline. These zones are almost completely leached of metals with the exception of discrete areas of anomalous molybdenum and weak copper, suggestive of a lithocap above a porphyry system. The topographically lowest part of the alteration system is exposed in the San Felipe area, adjacent to a known porphyry prospect.

Recommendations

Los Cuarentas Este is adjacent to the San Felipe copper – molybdenum prospect and hosts widespread alteration which may represent a porphyry lithocap. Although associated Mo-Cu anomalism is weak, outcrops are partly leached and it is possible that drill targets could be identified with further work. An integrated program of geophysical surveys and detailed analysis of alteration mineralogy is recommended to define vectors for drill targets.

Agreement and Terms

The project is currently under an option to joint venture with Centerra Gold.

“THE TECHNICAL INFORMATION WITHIN THIS DOCUMENT HAS BEEN REVIEWED AND APPROVED BY GREGORY A. BEISCHER, PRESIDENT & CEO OF MILLROCK RESOURCES INC. MR. BEISCHER IS A QUALIFIED PERSON AS DEFINED IN NI 43-101.”